Not all real estate deals need a hard money loan, but there are real estate deals where a hard money loan may be best. So what are the best deals for hard money loans?
Real estate investors use hard money loans for many several different situations to fund deals. The main reason a real estate investor will choose a hard money loan over traditional financing is a hard money lender has the ability to fund the loan quickly. In most situations, our hard money loans can be funded within a week.
A hard money loan may be your best source of financing when banks are not an option or the loan is needed in a short period of time.
The most common types of real estate investing deals that may require are hard money loan include:
- Fix and Flips
- Land Loans
- Construction Loans
- When the investor has credit issues.
- When a real estate investor needs a loan quickly.
The loan amount the hard money lender is able to lend is determined by the ratio of loan amount divided by the value of a property. This is known as the loan to value (LTV). Some hard money loans will be based on the after repair value (ARV) which is the estimated value of the property after the borrower has improved the property.
A hard money lender will also consider the borrower’s plan for the property. The borrower must present a reasonable plan that shows how they intend to ultimately pay off the loan. Usually, this is improving the property and selling it or obtaining long-term financing later on.
DFW-Hardmoney is a Texas based lender that provides investor non-occupant loans. As long as your property is in Texas, you may qualify for a hard money loan in as little as 48 hours!
- Loan terms are 6-24 months depending on borrower and project
- Interest rate ranges from 10.5%-14%
For more information on our terms and loan requirements, click any link below.